Which of the Bankruptcy Types is best for you?
– Which of the bankruptcy types is best for you?
To my respected U.S. citizens from all walks of life, to all the heroes and heroines who have put their lives beyond reproach to better the laws in our land. As I write and give this honest opinion on “which of the bankruptcy types is best for you?” I hope you will go step by step in making right decisions as to which bankruptcy type best suit your needs.
Here, we take a look!
In choosing the best type of consumer bankruptcy that best fit your situation, it is essential to study the two types of bankruptcy in order to find the best option for your situation.
The straight bankruptcy or simply Chapter 7 liquidation bankruptcy is available for all types of consumers and businesses. In this type of bankruptcy assets that can settle the debts are turned over to the trustee who will in turn pay the creditors with the proceeds. You are allowed to keep certain exempt property (see chapter 7 “What do you keep when filing for Bankruptcy”). After you file this type of bankruptcy, the creditors are not permitted to collect any type of funds directly from you. In fact, when the assets are liquidated and creditors are paid, the remains of your debts are canceled and you will be no longer responsible for them.
Going by most experiences, you should only have the option of Chapter 7 type of bankruptcy in cases where you have no hope of repaying your debts, you will protect your exempt income and property, when you are about to be sued by your creditors, you have debts without co-signers, or when you don’t completely qualify for Chapter 13 bankruptcy type. If you have lots of equity in your home, the trustee may sell it. And if you are behind in mortgage payments or your car loan note, Chapter 7 bankruptcy is not usually the best way to save your home or car.
On the contrary, the Chapter 13 often called “reorganization” type of bankruptcy and can restructure your debt into a reasonable debt payment plan, if your income qualifies you, through a repayment plan administered by the bankruptcy trustee.
You can then repay this debt at a steep discount from ten (10%) on up to the amount owed, depending on the nature you qualify for. Chapter 13 debit relief is often the best bankruptcy option for people who are behind in their mortgage with lots of equity in their home or many other assets to protect. You get the protection of the bankruptcy court during your repayment period, which lasts either three or five years.
Therefore, it is incumbent upon you to choose the best bankruptcy type, which suits you, the most.
Please take note: Any type of bankruptcy filed will not relieve debts accruing as a result of alimony and child support, debts incurred by fraud or international wrongdoing, recent purchases involving huge sums of money, back taxes under three years and student loans, drunk driving judgments and criminal restitution or fines.
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ISBN: 978-1475252521
ISBN-13: 1475252528
